What is an REO?

REO stands for "Real Estate Owned" property. If a foreclosed property is not purchased at auction, it is typically bought back by the lender. Many auctions don’t even result in a bid.  Although the lender is often a bank, credit unions, mortgage companies and other financial organizations can also lend money to purchase properties -- and foreclose on them if they need to. Since banks and other lenders aren't in the business of being landlords, they will often want to get REOs properties listed and sold as quickly as possible, creating some truly excellent opportunities for buyers.